Assessment of Relationship between Service Quality, Consumer Satisfaction and Consumer Loyalty in Retail Outlet Using SEM PLS Analysis

Abstract

In this era of competitiveness, organizations compete by enhancing their service quality to satisfy their customers. Primary data for the study was collected from eighty consumers who visited the retail shop which sold chilled chicken and meat products exclusively under its own brand name in Coimbatore city of Tamil Nadu state by direct interview method using Retail service quality scale. This study was undertaken to assess the interrelationships between service quality attributes, customer satisfaction and customer loyalty by developing a model, linking these three constructs were analyzed using SEM PLS method. The retail service quality model consisted of the five dimensions physical appearance, reliability, personal interaction, problem solving and policy was termed as the structural model. This model measured the strength of the five dimensions in estimating the retail service quality construct and results indicated policy, needs to be improved by the case firm for enhancing the retail service quality. The results of the study indicated that customer satisfaction and customer loyalty are dependent on retail service quality whereas customer loyalty to a particular store was not completely depending on satisfaction alone.